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so in this video I want to talk about
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the risk management for all of you we're
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talking beginners we're talking people
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that never got a payout never got funded
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or already got payouts and got funded
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and want bigger payouts I'm going to
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give you a formula on how to get
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consistent payouts from the market this
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is going to be the most insightful video
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when it comes into risk management with
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funded accounts and yes you might still
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be in your challenge phase and I do have
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videos on formulas when it comes into
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getting funded but this is a very
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important part of your journey what are
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you doing once you get funded how can
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you get consistent payouts and this is
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going to be a big wakeup call for a lot
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of you because when you get into the
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funding this is normally when you start
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doing dumb mistakes and then you get
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into draw down and then you blow the
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funded account so all of this idea of I
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am going to get a payout goes out of the
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window once you get a few losing trades
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and that is exactly what I want to avoid
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so we're going to go into the computer
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this is going to be a downloadable
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resource and I'm going to give you the
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formulas in whatever stage of your
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trading you are at right now so let's
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get into it so let's talk about the best
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risk management for funded accounts and
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you need to understand a couple of
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things it's all based on the skill that
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you have if you haven't got a payout if
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you're a beginner Trader if you're not a
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beginner Trader TR the number of funded
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accounts that you have and the
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consistency at which you want to get the
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payouts I will explain all of these in
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detail but someone that has gotten
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hundreds of thousands of dollars in
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payouts should not be approaching prop
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Firs the same way as someone that has
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never gotten a payout and that is why I
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think this video is going to be great
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because it's going to be an arrangement
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of every single skill level you will
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have a formula on what to risk when it
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comes to your funded account and if you
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like that please make sure to subscribe
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I'm going to do a whole free 30-day boot
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camp in this YouTube very very soon so
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keep your eyes peeled for that so let's
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talk about the risk management for
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funded account well first we're talking
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about skill and the skill is based on
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the idea of if you've had previous
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payouts or if you have never had
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previous payouts and first let's start
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off with the people that have never
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gotten a payout because this is I know
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that this is a lot of you and a lot of
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you are getting ready for when you get
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funded and this is going to be extremely
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extremely important and then let's talk
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about consistency do you want bigger
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payouts or do you want consistent
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payouts and let's start off because I
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know that most people are going to want
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bigger payouts right you got your funded
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account you want to get a big payout
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because you want to prove to yourself I
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can make money from Trading but but I
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want you to think about this you do not
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have previous payouts so you don't have
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previous experience showing you that I
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can get payouts from a prop firm and so
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if you are thinking that you want bigger
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payouts I want you to rethink why you
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want a bigger payout you need to
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understand a bigger payout is going to
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incur more risk because if you don't
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risk you have no reward and if you want
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a higher reward which means a higher
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payout you're going to have to risk more
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and so I want you to rethink why because
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if you don't have previous payouts if
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you don't even have one payout to prove
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that you can get consistent payouts then
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why are you trying to go for a big one
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it doesn't make any sense if you have
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never gotten a payout consistent payouts
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is the way to go it really is a lot of
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Traders they get so caught up because
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they start comparing themselves with the
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other Traders and how much they're
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getting paid out and this beginner that
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never got payout before and his first
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payout was a $30,000 payout let me tell
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you a lot of the people that you hear
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that the first payout was a $20,000
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payout they will not show you all of the
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blown accounts and by the way they will
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not show you the same people that are on
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the same boat as you meaning they never
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got a payout and they will never get a
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payout because they're always aiming for
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the big one right so I want you to think
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about if you are a beginner especially
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if you don't have any payouts you want
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consistent payouts first you want
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something called proof of concept and
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then once you want consistent payouts it
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depends on the number of funded accounts
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that you have and the reason for that is
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because like once you get funded that is
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your opportunity to make money from
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Trading right once you get funded you
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can finally get actually a payout you
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don't need to profit 8% you don't need
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to profit 10% you don't need to profit
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whatever it is to actually be able to
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get a payout so you you just need to
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profit so it's going to be different the
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approach that we are going to be using
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if you have one funded account two to
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three funded accounts or four plus
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funded accounts and you will see that uh
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we'll talk about this a little bit after
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at the end of the video that is going to
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be one of the best lessons ever so the
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risk that you're going to have if you
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are trading with one funded account is
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going to be Max draw down divided by
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four divided by the number of Trades
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that you take per week so let's say that
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the Max draw down on ftmo for example is
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10% you divide that by four
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and then you divide that by the number
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of Trades that you take per week so
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let's say if I take five trades per week
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that means that I'm going to be risking
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0.5% per trade and if you want to be
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even more conservative you can do this
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by eight now why am I giving you this
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formula why is this the formula because
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you're basically dividing the Max draw
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down by four which means you are going
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to need four weeks of consistent losing
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to blow your account and if you have not
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never gotten a payout but you got to the
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funded the likelihood of this happening
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is very very low so if you've never
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gotten a payout and you have one funded
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account I would say risk Max draw down
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divided by four divided by number of
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Trades per week because again this is
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really going to reduce the risk of you
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blowing the account and if you don't
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know the number of Trades that you take
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per week well you should and if you
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don't have that data look back in the
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last month how many trades that you have
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and divide that by four now if you have
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two to three funded accounts the risk
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that you're going to have on one single
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account is going to be Max dra down
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divided by 2.5 divided by the number of
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Trades per week so let's say once again
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10% divided by 2.5 divided by five
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trades per week that means I'm going to
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be risking 0.8% on my funded account on
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one of the two to three funded accounts
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because again this is going to maximize
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The Profit that you are going to take
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without risking your funded account
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without risking your opportunity to make
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money which is the number one thing that
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you have to be thinking about it's the
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opportunity for you to make money and so
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you want to reduce the risk of you
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losing the opportunity to make money as
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much as possible meaning you want to
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reduce the risk and the probability of
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you losing the funded account as much as
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possible and so then you are going to do
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something called the rotate account
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which we are going to talk about very
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very soon and if you have four or more
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funded accounts then what you should do
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is Max throw down divided by two divided
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by number of Trades per week so that
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means that Max drw down divided by 2
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ided by 5 that means that in this case
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if I'm taking five trades per week I'm
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going to be risking 1% per trade and
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again this is only on one account
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because then we are going to be rotating
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accounts and this is going to basically
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guarantee that if you are profitable you
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can get consistent payouts every single
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month you will get a payout right that
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is my number one goal for you I want you
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to see payouts getting into your account
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and so that is how we are going to be
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approaching it if you don't have
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previous payouts and stick around
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because we are going to talk about what
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this rotate account is going to be and
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it's going to be one of the most
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important things if you're watching this
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just for this video I made a quiz that
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basically is going to take you through
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all these paths and tell you what risk
00:08:18
you should use and at the end there is
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going to be a calculator on a Google
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Sheets that you will be able to input
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your values and you will be able to know
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how much you should be risking in
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percentage per trade so make sure to
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check the first link in the description
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the quiz is going to be there and the
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calculator is going to be at the end of
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the quiz now let's talk about if you
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have previous payouts well in this case
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wanting bigger payouts is a possibility
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and so we'll talk about that but first
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let's talk about consistent payouts on
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the funded accounts well in one two to
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three or four plus funded accounts the
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formula actually Remains the Same as if
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you have not gotten a payout yet because
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again we understand that the the goal is
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to get consistent payouts the number one
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goal is consistent payouts and so the
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formula Remains the Same but if you have
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gotten previous payouts that means that
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very likely you are going to get more
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and more and more payouts because maybe
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you are a little bit more profitable
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than the person that has not gotten
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payouts once again the reason for these
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formulas believe me I spent hours coming
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up with these formulas because I was
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thinking okay what do I do and how can I
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guarantee that The View
00:09:29
watches this video implements these
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formulas and then actually gets
00:09:34
consistent payout because again my
00:09:37
number one goal is for you to get a
00:09:39
payout that's the number one goal with
00:09:41
the simple trading Edge that's the
00:09:43
number one goal with the boot camp that
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I'm going to have very very soon all on
00:09:47
YouTube but now let's say that you have
00:09:49
previous payouts and you want bigger
00:09:51
payouts well this depends also on the
00:09:54
number of funded accounts that you have
00:09:56
if you have one funded account I don't
00:09:57
really recommend it but again I'm going
00:09:59
to give you a formula two to three
00:10:01
accounts or four plus funded accounts
00:10:03
well if you have one funded account you
00:10:05
should do Max draw down divided by two
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divided by the number of Trades per week
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which means yes you are going to be
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risking in my example around 1% per
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trade but you don't need much more you
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need to understand you only have one
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funded account why would you risk more
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than that on one funded account so don't
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risk more than 1% I would say and the
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formula is Max dra down divide by two
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divided by the number number of Trades
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you take per week but if you have two to
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three funded accounts then the risk you
00:10:33
should be taking would be Max draw down
00:10:35
divided by the number of Trades per week
00:10:37
so worst case scenario this is the
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problem worst case scenario is if you
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have a full losing week you are going to
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lose one of the accounts because don't
00:10:47
forget that this is all about trading on
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one account and you are going to rotate
00:10:51
the accounts we are going to talk about
00:10:53
that right after so to to three funded
00:10:55
accounts you are going to very much
00:10:57
increase the the risk of you losing the
00:10:59
funded account but also you need to
00:11:01
understand this is about wanting bigger
00:11:03
payouts and this is only for Traders
00:11:06
that have previous payouts and then if
00:11:09
you have four or more funded accounts
00:11:10
then what you can do Max dra down
00:11:12
divided by 0.8 divided by the number of
00:11:15
Trades per week which means let's say
00:11:17
that you take five trades per week if
00:11:19
you lose the first four you are going to
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be losing this account and again it's
00:11:23
just one I really really need to
00:11:26
emphasize that this should be taken on
00:11:28
one account and that's now what we are
00:11:31
going to talk about on the rotating the
00:11:33
account because I want you to understand
00:11:35
this very very clearly before it used to
00:11:37
be very known that you just Interlink
00:11:39
all of the accounts and you trade all of
00:11:41
the accounts at first because if you
00:11:43
have $4 million or if you have $1
00:11:45
million in assets under management that
00:11:48
means that you are going to make $10,000
00:11:50
every time you risk 1% if you copy trade
00:11:53
between all of the accounts I've tried
00:11:55
that I know many many people that have
00:11:57
tried that I know a a lot of people that
00:12:00
still do that and I know a lot of people
00:12:02
that are going to do the account
00:12:03
rotation as I'm going to tell you the
00:12:05
people that are most consistent in terms
00:12:07
of payouts they rotate the accounts and
00:12:10
that's what I'm going to explain to you
00:12:11
what this is and the idea for this video
00:12:14
came about when I was talking with the
00:12:16
coach inside of the simple trading and
00:12:17
she's going full-time uh trading this
00:12:20
year it was absolutely amazing to see he
00:12:23
told me I have a bunch of accounts blah
00:12:25
blah blah and I was like okay now you're
00:12:27
actually going to follow exactly what I
00:12:29
just showed you of wanting consistent
00:12:31
payouts and he was like oh but I could
00:12:33
just Interlink all of them risk 1% and I
00:12:36
would be making tens of thousands of
00:12:37
dollars every single month and I was
00:12:39
like yeah but that's not what you're
00:12:40
going to do because I want you to get
00:12:42
consistent payouts I don't want you to
00:12:43
go back to your job right so what does
00:12:46
the account rotation mean the account
00:12:49
rotation simply means that you are going
00:12:51
to use all of the funded accounts that
00:12:53
you have one at a time but you are
00:12:56
always going to be Road ating between
00:13:00
them as soon as you have profit that you
00:13:03
can lock in so for example if you have a
00:13:05
$100,000 account and you make $2,000 you
00:13:08
lock in the payout you move on to the
00:13:10
next one right one winning trade you
00:13:12
move on to the next one and this is a
00:13:14
perfect example let's say you make $500
00:13:16
which means 0.5% at this point you're
00:13:19
likely risking 1% you make $500 you lock
00:13:22
in the payout you move on to the next
00:13:24
one right then let's say you're entering
00:13:27
a losing streak - $500 - th000 minus
00:13:30
1,000 so you're down 2.5% and then you
00:13:33
make $2,000 meaning you make 2% and then
00:13:36
you make $1,000 which means you make 1%
00:13:38
you lock in the payout so now you've
00:13:40
already locked in $3,000 in payouts and
00:13:43
you already went through one losing
00:13:45
streak and then let's say you have
00:13:46
another Break Even trade that is a $200
00:13:48
trade you lock in that payout too
00:13:51
because don't forget that at that point
00:13:52
maybe this first account is already
00:13:54
available but you've already locked in
00:13:56
three payouts and with this one four
00:13:59
payouts so can you see what I mean with
00:14:02
consistent payouts and now let's imagine
00:14:05
that you get into a deep losing streak -
00:14:07
1% - 1% - 1% - 1% plus 2 plus 0.5 -
00:14:13
0.5 this is a big losing streak that you
00:14:16
could be taking and the Beautiful Thing
00:14:18
here and the reason why I really
00:14:20
seriously seriously recommend you doing
00:14:22
this is because as this losing streak is
00:14:25
happening you are not fearing that you
00:14:28
are going to lose lose all of your
00:14:30
livelihood you are not fearing that all
00:14:32
of a sudden you will not be able to pay
00:14:34
the bills anymore because you still have
00:14:37
all of these other accounts to fall back
00:14:40
on you still have all of the other two
00:14:43
accounts three accounts to fall back on
00:14:46
so this is extremely important because
00:14:49
we're talking about the consistency of
00:14:51
payouts and constantly getting that
00:14:53
payout costantly getting money into your
00:14:55
bank account what is the goal with
00:14:57
trading the goal with trading is to get
00:14:59
money out of the market into our bank
00:15:02
account that's the only time that you
00:15:04
have profited from Trading if the money
00:15:06
is not in your bank account you have not
00:15:08
yet profited from the markets if the
00:15:10
money is in the broker you have not yet
00:15:12
profited from the markets because you
00:15:14
have not withdrawn the money yet so it's
00:15:17
very important to keep that in mind and
00:15:19
so this is basically what the account
00:15:21
rotation means as soon as you get one
00:15:23
trade in profit you lock in the pay
00:15:27
doesn't matter if it's $200 doesn't
00:15:29
matter if it's $500 doesn't matter if
00:15:31
it's a $4,000 trit you lock that in so
00:15:34
maybe these $200 on this maybe Break
00:15:37
Even trade that you took is actually
00:15:39
your bills paid for a week so do you
00:15:42
understand how you are comparing
00:15:43
yourself with all these other
00:15:45
influencers or anyone that is making an
00:15:47
interview on the pop from Challenge and
00:15:49
you're forgetting that $200 is one week
00:15:52
of bills paid and that maybe you made in
00:15:54
one break even trade where you should
00:15:57
not even have profited all of a sudden
00:15:59
you're getting a payout and you're
00:16:01
getting your bills paid for a week how
00:16:03
freeing would that be how freeing would
00:16:07
it be to every single week get a payout
00:16:11
that would pay for your bills for
00:16:13
multiple weeks to come how beautiful
00:16:15
would that be and that is my goal for
00:16:18
you now some of you are going to say
00:16:20
well but how do I get to 100K 100K I
00:16:22
have a risk management video for that
00:16:24
but I want to talk about let's say you
00:16:25
have $10,000 counts this is the same
00:16:28
thing if you have $10,000 accounts
00:16:30
you're going to work the same way and
00:16:33
yes you are not going to get the biggest
00:16:34
returns but this is what you then are
00:16:36
going to funnel into bigger challenges
00:16:38
maybe your next funded account is going
00:16:40
to be a 100K account maybe the next
00:16:42
account is going to be a 200k funded
00:16:44
account who knows but that is going to
00:16:46
come from the consistency of getting
00:16:49
these payouts so let's say you entering
00:16:51
a big losing streak minus 5% you dig
00:16:54
yourself out of that losing streak until
00:16:56
you lock in the payout then you move on
00:16:58
to the next one profitable trade lock in
00:17:00
the payout move on to the next one
00:17:01
losing trade winning trade lock in the
00:17:03
payout right so all of a sudden you're
00:17:05
getting this consistent money into your
00:17:08
bank account that's the number one thing
00:17:10
that I wish for you and that's why I
00:17:13
really urge you to try to do this you
00:17:16
will see a huge shift in your trading
00:17:18
once you start doing this all of a
00:17:20
sudden you're going to be like man I
00:17:22
don't feel as stressed anymore when I'm
00:17:23
in a losing streak I don't really care
00:17:25
that much anymore and you'll notice that
00:17:27
it's because you have something to to
00:17:29
back you up you have something that if
00:17:31
you blow this account well it is what it
00:17:33
is I still have other ones and you're
00:17:35
not going to fall into the cycle of I've
00:17:37
entered into two trades losing okay it's
00:17:39
done I'm done I cannot pay the bills
00:17:41
trading is not working for me blah blah
00:17:43
blah that is going to happen to you if
00:17:45
you keep copying between accounts
00:17:48
eventually it will happen to you while
00:17:50
if you rotate the accounts you will go
00:17:52
on a losing streak on one but you won't
00:17:54
worry because on all of the other
00:17:55
accounts you will still be able to get a
00:17:57
payout because there will be at break
00:17:59
even or at a tiny profit or even at a
00:18:01
tiny loss so with that being said this
00:18:04
is the best system when it comes into
00:18:06
getting consistent payouts with prop
00:18:08
firms and that's I really urge you to
00:18:11
try to do this and you'll notice a huge
00:18:12
shift in your trading so make sure to
00:18:15
subscribe there's going to be 30 days
00:18:17
followed 30 days of a boot camp coming
00:18:20
in this channel which is going to be
00:18:22
absolutely a game changer on YouTube so
00:18:25
subscribe if you want to watch that if
00:18:27
you want the risk management for prop
00:18:29
firms when it comes into challenges then
00:18:30
that video is going to be right here
00:18:32
hope you enjoyed and I'll see you in the
00:18:33
next one peace if you're watching this
00:18:35
just for this video I made a quiz that
00:18:38
basically is going to take you through
00:18:39
all these paths and tell you what risk
00:18:41
you should use and at the end there is
00:18:43
going to be a calculator on a Google
00:18:45
Sheets that you will be able to input
00:18:47
your values and you will be able to know
00:18:50
how much you should be risking in
00:18:51
percentage per trade so make sure to
00:18:53
check the first link in the description
00:18:55
the quiz is going to be there and the
00:18:56
calculator is going to be at the end of
00:18:58
the quiz
00:19:00
[Music]
